GBS WORLD NEWS | WEEK 1 | AUGUST 2024
In the Philippines, President Ferdinand Marcos Jr. has announced a ban on offshore gaming operations, giving the industry until the end of 2024 to wind down, citing the need to curb associated criminal activities. The call has raised concerns about job losses, with many affected workers being employed by special BPO firms that cater to gaming clients. The ban is impacting 40,000 Filipino outsourcing workers. The Department of Labour and Employment pledged support, but the short deadline and potential underground operations pose challenges.
In South Africa, the City of Cape Town celebrated the creation of over 10,000 new call centre jobs from March 2023 to 2024. Mayor Geordin Hill-Lewis and Alderman James Vos highlighted the sector’s economic contribution of ZAR 21 billion (US$ 1.15 billion). CapeBPO, funded by the city, aids skills development and attracts BPO businesses, and other major contributors include EXL and Teleperformance.
South Korea is increasingly outsourcing IT tasks to Southeast Asia, especially to reduce labor costs. Companies like FPT Software and SotaTek JSC have entered the Korean market, serving major clients and expanding rapidly. FPT Software’s Korean sales grew from 20 billion won (US$ 4.6 million) in 2022 to 32.9 billion won (US$ 24 million) in 2023. With Vietnamese developers earning significantly less than their Korean counterparts, small and medium-sized enterprises are also turning to Southeast Asian and Indian developers. The Ministry of SMEs and Startups is supporting this trend by linking domestic companies with Indian developers.
In India, the Information and Communication Technology (ICT) Academy has signed a ₹88-crore (US$ 10.5 million) MoU to train over 90,000 students in Tamil Nadu, focusing on women from government colleges. This amount is in addition to the ₹33 crore granted for Infosys targeting 48,000 underprivileged students earlier this year. The training spans IT, cybersecurity, communication, BFSI, BPO, and retail sector skills. The initiative aims for a 70% job placement rate.
Over in London, the transatlantic growth equity investor, Kennet, has closed its largest fund, Kennet VI, at €266 million (US$ 287 million) to invest in capital-efficient B2B SaaS companies across Europe. The fund will focus on founder-owned, high-growth tech companies, emphasizing long-term partnerships and strategic international expansion. Key investors include Edmond de Rothschild Private Equity.
According to a recent report by Coherent Market Insights, the global Knowledge Process Outsourcing (KPO) market is projected to grow from US$ 31.14 billion in 2024 to US$ 88.12 billion by 2031, with a 16% CAGR. The report examines industry trends, competition, and geographical analysis. The market is driven by rising demand, a larger clientele, and technological advancements, with the major sectors served including BFSI, healthcare, IT, and manufacturing.
